Types of Taxes

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What is Sales Tax?

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A tax imposed on the sale of goods and services, typically calculated as a percentage of the purchase price.

Tags

CCSS.6.RP.A.3B

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What is Income Tax?

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A tax levied on the income earned by individuals and businesses, usually calculated as a percentage of the income.

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What is Payroll Tax?

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A tax that employers withhold from employees' wages to fund social security and Medicare.

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What is Property Tax?

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A tax based on the value of owned property, typically assessed by local governments.

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What is a Progressive Tax System?

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A tax system where the tax rate increases as the taxable amount increases, meaning higher earners pay a higher percentage.

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What is a Regressive Tax System?

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A tax system where the tax rate decreases as the taxable amount increases, meaning lower earners pay a higher percentage of their income.

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What is a Proportional Tax System?

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A tax system where the tax rate remains constant regardless of the amount subject to tax.

Tags

CCSS.8.EE.B.5

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How do taxes affect take-home pay?

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Taxes reduce the amount of money an employee receives in their paycheck, resulting in lower take-home pay.

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Calculate the final cost of an item priced at $850 with a sales tax of 11%.

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Final cost = $850 + ($850 * 0.11) = $943.50.

Tags

CCSS.6.RP.A.3C

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What is the purpose of taxes?

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To fund government services and programs, including education, infrastructure, and public safety.